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Kenya’s residential property market is thriving with its remarkable growth driven by increasing demand from local buyers, expats, and international investors.

The country’s luxury residential market’s demand is being driven by affluent buyers with Nairobi ranking among the top cities globally for luxury real estate property growth, and in some cases, outperforming cities like London and Paris.

The dynamics of Kenya’s high-end residential market will be explored during the East Africa Property Investment (EAPI) Summit, a premier real estate event that brings together +450 global investors, developers, and professionals from the real estate industry. This year’s summit will explore how developers and investors can capitalise on opportunities in countries such as Tanzania and Zanzibar, Kenya, Uganda, Rwanda, and Ethiopia who are all showing promising signs of economic recovery, improving political stability, and stabilising interest rates.

Real estate experts will unpack investment opportunities in Kenya’s high-end residential market which institutional investors and development finance institutions are increasingly paying more attention to as they fund mixed-use developments that combine residential with retail and leisure facilities, attracting younger buyers seeking modern living solutions.

Stanbic Bank / Standard Bank, a Gold Sponsor of this year’s EAPI Summit, is committed to addressing Kenya’s housing needs while promoting sustainability and economic growth in the real estate sector.

The Group’s financial solutions include mortgage financing to cover a property sale price plus closing costs like stamp duty and legal fees; financing for residential property construction; funding products targeting Kenyans seeking affordable housing solutions; cost for residential plots in major towns; and blended finance options for sustainable and affordable student housing.

While the luxury end of the residential market remains shaped by location, size of the unit, and breadth of features that align with buyer tastes and aspirations, Stanbic Bank believes the segment is not starving of attention from investors. However, the affordable housing market remains neglected, despite its demand remaining strong.

“In the affordable housing segment, factors shaping the evolution of successful projects are the proximity of projects to key business hubs, accessibility to transport networks, and quality of offering trade-offs relative to price point. It is useful to highlight that the demand in a large section of this market segment is driven by the rental markets and the retail and institutional property investment markets,” says spokesperson Niyi Adeleye, the head of real estate finance for Africa regions at Standard Bank Group, which is part of the Stanbic Bank.

“For Stanbic Bank / Standard Bank, our interests remain to actively participate in and contribute to the development and shaping of the built environment in countries in our footprint of which Kenya is key. Our activities provide opportunities to participate in projects with significant social impacts and that deepen environmental impacts in collaboration with the project sponsors through the development of green-rated properties and our provision of green loans to back those developments. In addition, these projects help shape the property evolution of the cities and countries to improve livability and the growth and availability of more robust social infrastructure,” he says.

Despite the growth potential of Kenya’s residential market, it faces notable hurdles with property developers struggling to access long-term financing due to high interest rates and stringent lending requirements. Land tenure issues also play a part with legal disputes over landownership that can delay projects and increase costs. Another conundrum is that the demand for residences and luxury homes often outpaces supply, which creates competitive pricing pressures.

This year’s EAPI Summit will host leading experts who will assist potential investors to navigate through these challenges. Among them is sponsor Hass Consult which offers high-end homes for sale in Nairobi.

“As East Africa’s economic and cultural hub, the city is increasingly attracting a global, more sophisticated consumer— one who has been exposed to premium real estate and world-class hospitality standards. This demographic, which includes a growing number of expatriates and globally mobile Kenyans, brings with it elevated expectations for quality, design, and lifestyle,” says Farhana Hassanali-Hashmani, the CEO of Hass Consult.

This global influence has translated into a significant increase in the willingness to pay for luxury and value-added amenities, she adds, with property developers now having more latitude to invest in high-quality finishes, curated experiences, and thoughtful design.

“Today, luxury is not solely about the physical asset; it’s about the entire user experience. Homeowners and investors are looking for developments that offer seamless living—from top-tier management to integrated wellness facilities and thoughtfully designed communal spaces. The emphasis on lifestyle is now central to how value is perceived and how capital growth is sustained.

“There’s a strong and growing demand for developments that offer world-class lifestyle amenities—spaces that speak to health, wellness, and fitness, all delivered through a refined user experience. Residents are looking for environments that support balance, well-being, and convenience, echoing global trends in urban living.”

There’s also a significant shift in the demographic of buyers in the luxury housing market.

“Luxury is no longer confined to the older, ultra-wealthy buyer purchasing sprawling homes. We’re seeing a diverse mix of younger, aspirational buyers who are investing in compact yet premium residences—where quality, convenience, and lifestyle matter more than square footage,” she concludes.

The 12^th East Africa Property Investment Summit meeting will take place on the 7th and 8th of May 2025 at Pullman, Upper Hill, Nairobi, Kenya.

For more information and to book to attend the EAPI Summit visit https://eapisummit.com/

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